[Federal Register Volume 75, Number 14 (Friday, January 22, 2010)]
[Proposed Rules]
[Pages 3642-3647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-1213]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 75, No. 14 / Friday, January 22, 2010 /
Proposed Rules
[[Page 3642]]
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1774
RIN 0572-AC14
Special Evaluation Assistance for Rural Communities and
Households Program
ACTION: Proposed rule.
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SUMMARY: The Rural Utilities Service (RUS) is issuing a regulation to
establish the Special Evaluation Assistance for Rural Communities and
Households (SEARCH) Program as authorized by Section 6002 of The Food,
Conservation and Energy Act of 2008, Public Law 110-246 (Farm Bill),
which amended Section 306(a)(2) of the Consolidated Farm and Rural
Development Act (CONACT) (7 U.S.C. 1926 (a)(2)). The amendment added
the new SEARCH grant program under which the Secretary is authorized to
make predevelopment planning grants for feasibility studies, design
assistance, and technical assistance to financially distressed
communities in rural areas with populations of 2,500 or fewer
inhabitants for water and waste disposal projects.
DATES: You may submit comments according to the following deadlines:
Paper copies must be postmarked and mailed, shipped, or
sent overnight no later than February 22, 2010 to be eligible for
consideration. Late comments will not be considered.
Electronic copies must be received by February 22, 2010 to
be eligible for consideration.
ADDRESSES: Submit comments by either of the following methods:
Federal eRulemaking Portal: Go to http://www.regulations.gov and in the ``Search Documents'' box, enter RUS-09-
Water-0001, and select GO>>. To submit a comment, choose ``Send a
comment or submission,'' under the Docket Title. In order to submit
your comment, the information requested on the ``Public Comment and
Submission Form,'' must be completed. Information on using
Regulations.gov, including instructions for accessing documents,
submitting comments, and viewing the docket after the close of the
comment period, is available through the site's ``How To Use This
Site'' link.
Postal Mail/Commercial Delivery: Please send your comment
addressed to Michele Brooks, Director, Program Development and
Regulatory Analysis, USDA Rural Development, 1400 Independence Avenue,
STOP 1522, Room 5162, Washington, DC 20250-1522. Please state that your
comment refers to Docket No. RUS-09-Water-0001.
Other Information: Additional information about Rural Development
and its programs is available on the Internet at http://www.rurdev.usda.gov/index.html.
FOR FURTHER INFORMATION CONTACT: Anita O'Brien, Loan Specialist, Water
and Environmental Programs, U.S. Department of Agriculture, Rural
Utilities Service, Room 2230 South Building, Stop 1570, 1400
Independence Ave., SW., Washington, DC 20250-1570. Telephone: (202)690-
3789, FAX: (202)690-0649, E-mail: [email protected].
SUPPLEMENTARY INFORMATION:
Classification
Executive Order 12866
This proposed rule has been determined to be not significant for
purposes of Executive Order 12866 and, therefore, has not been reviewed
by the Office of Management and Budget (OMB).
Executive Order 12988
This proposed rule has been reviewed in accordance with Executive
Order 12988, Civil Justice Reform. RUS has determined that this
proposed rule meets the applicable standards provided in section 3 of
the Executive Order. In addition, all State and local laws and
regulations that are in conflict with this rule will be pre-empted; no
retroactive effect will be given to the rule; and in accordance with
section 212(e) of the Department of Agriculture Reorganization Act of
1994 (7 U.S.C. sec. 6912(e)), appeal procedures must be exhausted
before an action against the Department or its agencies may be
initiated.
Regulatory Flexibility Act Certification
It has been determined that the Regulatory Flexibility Act is not
applicable to this proposed rule since the Rural Utilities Service is
not required by 5 U.S.C. 551 et seq. or any other provision of law to
publish a notice of final rulemaking with respect to the subject matter
of this rule.
Information Collection and Recordkeeping Requirements
The information collection and recordkeeping requirements contained
in this rule will not be effective until approved by the Office of
Management and Budget (OMB), subject to the submission of a paperwork
package for which the Agency intends to request approval from OMB
pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35).
RUS invites comments, on any aspect of this collection of information
including suggestions for reducing the burden. Send questions or
comments regarding this information collection to Michele Brooks,
Director, Program Development and Regulatory Analysis, Rural Utilities
Service, U.S. Department of Agriculture, STOP 1522, Washington, DC
20250-152, Fax: (202) 720-8435.
Nonprofit organizations applying for SEARCH grants must submit an
application which includes an application form, various other forms,
certifications, and supplemental information. RUS will use the
information collected from applicants, borrowers, and consultants to
determine applicant eligibility, project feasibility, and the
applicant's ability to meet the grant and regulatory requirements.
Failure to collect proper information could result in improper
determinations of eligibility, improper use of funds, or hindrances in
making grants authorized by the SEARCH program.
The applicant will submit the following information:
SF-424, ``Application for Federal Assistance.'' (cleared under
4040-0004)
Applicants use this form as a required cover sheet for applications
submitted for SEARCH grants. The application is an official form
required for all Federal grants and requests basic information about
the applicant and the proposed project.
SF-424A, ``Budget Information--Non-Construction Programs.''
(cleared under 4040-0006)
[[Page 3643]]
Applicants project costs and expenses for the grant project. The
form also provides information on matching funds. This form is
submitted as part of the pre-application and if the project is
selected, as part of the formal application.
SF-424B, ``Assurances--Non-Construction Programs.'' (cleared under
4040-0007)
Applicants read and sign this form to indicate the organization's
intent to comply with the laws, regulations, and policies to which a
grant is subject.
Project Narrative
Applicants will provide a project narrative detailing the project
to be financed with the SEARCH grant funds. The narrative will also
provide details on the activities or tasks to be accomplished,
objectives, timetables for task completion, and anticipated results.
RD 400-1, ``Equal Opportunity Agreement'' and RD 400-4, ``Assurance
Agreement.'' (cleared under 0575-0018)
Applicants read and sign these forms to assure RUS that they agree
to and will comply with Title VI of the Civil Rights Act of 1964, and
the Equal Opportunity Clause under Executive Order 11246 of September
24, 1965.
Certification Regarding Debarment, Suspension, and Other Responsibility
Matters--Primary Covered Transactions
USDA regulations published at 7 CFR Part 3017 implement the
government-wide debarment and suspension system for USDA's non-
procurement transactions. Applicants for SEARCH grants are required to
provide certification under these regulations. Form AD-1047 may also be
used to obtain the required certification.
Certification Regarding Debarment, Suspension, Ineligibility and
Voluntary Exclusion--Lower Tier Transaction
Form AD-1048 will be signed by applicant's suppliers, auditors,
contractors, etc., and retained by applicant in their files.
Certification Regarding Drug-Free Workplace Requirements (Grants)
Alternative I--for Grantees Other Than Individuals
USDA regulations published at 7 CFR Part 3017 implement the Drug-
Free Workplace Act of 1988, which requires that grant recipients agree
that they will maintain a drug-free workplace. Applicants are required
to provide certification under these regulations. Form AD-1049 may also
be used to obtain the required certification.
Relationship or Association With RUS Employees
Applicants must identify and report any known relationship or
association with a RUS employee such as close personal association,
immediate family, close relatives, or business associates.
Supporting Documentation
Applicants must provide documentation of legal organization and
authority to borrow funds, construct, operate, manage the facility,
etc. The documentation may include articles of incorporation,
certificate of incorporation and good standing, bylaws, rules, and
organizational minutes. Applicants also must provide financial
information such as financial statements, audits, or existing debt
instruments. This information is necessary for RUS to determine an
organization's legal existence, authority to perform certain functions,
and financial capacity to borrow funds.
Agreements for Professional Services
Applicants must contract for the professional services rendered
from an engineer, attorney, bond counsel, accountant, auditor,
appraiser, or financial advisor. Contracts or other forms of agreement
for services necessary for project planning and development are subject
to RUS concurrence. Applicants must submit them to RUS for review and
concurrence to ensure the needed services will be available at a
reasonable cost.
Grant Agreement
The Grant Agreement sets forth the terms and conditions under which
the applicant receives a RUS grant. Applicants and RUS must execute the
document before RUS disburses grant funds.
Audits Based on Federal Assistance
Borrowers must submit audited financial statements annually in
accordance with Generally Accepted Government Auditing Standards
(GAGAS). The audit must comply with the requirements of OMB Circular A-
133, ``Audits of State, Local Governments, and Non-Profit
Organizations'' or Water and Waste Disposal audit requirements.
The requirements for submitting an audit report under OMB Circular
A-133 are based on the total amount of Federal financial assistance
expended during a borrower's fiscal year from all Federal sources.
Borrowers that expend $500,000 or more in a year in Federal awards must
have a single audit conducted for that year under OMB Circular A-133.
Those that expend less than $500,000 in Federal awards and have an
outstanding RUS loan balance equal to or greater than $1,000,000 must
submit an audit in accordance with Water and Waste Disposal audit
requirements. Borrowers expending less than $500,000 in Federal
assistance and having a RUS loan balance less than $1,000,000 may
submit a management report instead of an audit report. RUS will
designate the type of audit borrowers must submit.
Management Reports
All borrowers must furnish management reports that will provide
management a means of evaluating prior decisions and serve as a basis
for planning future operations and financial strategies. This
requirement is necessary to help assure that the facility will be
properly managed and to protect the financial interest of the
Government.
Form RD 1942-8, ``Resolution of Members or Stockholders'' (cleared
under 0575-0015)
Nonprofit applicants prepare this form to indicate that the
governing body has the authority to enter into a grant of a particular
amount with RUS.
Form RD 442-7, ``Operating Budget'' (cleared under 0575-0015)
All applicants use the form to project income and expense items and
a complete cash flow through the first full year of operations after
they use the loan proceeds. These projections are necessary in
determining the source and reliability of the projected income and the
adequacy of resources to repay the loan in a timely manner, operate and
maintain the facility, and maintain adequate reserves.
Comments on this information collection must be received by March
23, 2010.
Comments are invited on (a) whether the collection of information
is necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility; (b) the
accuracy of the agency's estimate of burden including the validity of
the methodology and assumption used; (c) ways to enhance the quality,
utility, and clarity of the information to be collected; and (d) ways
to minimize the burden of the collection of information on those who
are to respond, including through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques on
other forms and information technology.
Title: Special Evaluation Assistance for Rural Communities and
Household Program (SEARCH).
OMB Control Number: 0572-NEW.
[[Page 3644]]
Type of Request: New.
Abstract: The Food, Conservation and Energy Act of 2008, Public Law
110-246 (Farm Bill) amended Section 306(a)(2) of the Consolidated Farm
and Rural Development Act (CONACT) (7 U.S.C. 1926 (a)(2)). The
amendment created a grant program to make Special Evaluation Assistance
for Rural Communities and Households (SEARCH) Program grants.
Under the SEARCH program, the Secretary may make predevelopment and
planning grants to public or quasi-public agencies, organizations
operated on a not-for-profit basis or Indian tribes on Federal and
State reservations and other federally recognized Indian tribes. The
grant recipients shall use the grant funds for feasibility studies,
design assistance, and development of an application for financial
assistance to financially distressed communities in rural areas with
populations of 2,500 or fewer inhabitants for water and waste disposal
projects as authorized in Sections 306(a)(1), 306(a)(2) and 306(a)(24)
of the CONACT.
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 32.15 hours per responses.
Estimated Number of Respondents: 50.
Estimated Number of Total Annual Reponses per Respondents: 820.
Estimated Total Annual Burden on Respondents: 1,050.
Copies of this information collection can be obtained from MaryPat
Daskal, Program Development and Regulatory Analysis at (202) 720-7853.
All responses to this information collection and recordkeeping
notice will be summarized and included in the request for OMB approval.
All comments will also become a matter of public record.
E-Government Act Compliance
Rural Development is committed to the E-Government Act, which
requires Government agencies in general to provide the public the
option of submitting information or transacting business electronically
to the maximum extent possible.
National Environmental Policy Act Certification
The Administrator of RUS has determined that this proposed rule
will not significantly affect the quality of the human environment as
defined by the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.). Therefore, this action does not require an environmental
impact statement or assessment.
Catalog of Federal Domestic Assistance
The program described by this proposed rule is listed in the
Catalog of Federal Domestic Assistance Programs under number 10.759--
Special Evaluation Assistance for Rural Communities and Households
Program (SEARCH). This catalog is available on a subscription basis
from the Superintendent of Documents, the United States Government
Printing Office, Washington, DC 20402-9325, telephone number (202) 512-
1800 and at https://www.cfda.gov.
Executive Order 12372
This program is not subject to the requirements of Executive Order
12372, ``Intergovernmental Review of Federal Programs,'' as implemented
under USDA's regulations at 7 CFR part 3015.
Unfunded Mandates
This proposed rule contains no Federal mandates (under the
regulatory provision of title II of the Unfunded Mandates Reform Act of
1995) for State, local, and tribal governments or the private sector.
Therefore, this proposed rule is not subject to the requirements of
section 202 and 205 of the Unfunded Mandates Reform Act.
Executive Order 13132, Federalism
The policies contained in this proposed rule do not have any
substantial direct effect on states, on the relationship between the
national government and the states, or on the distribution of power and
responsibilities among the various levels of government. Nor does this
proposed rule impose substantial direct compliance costs on state and
local governments. Therefore, consultation with states is not required.
Background
The Food, Conservation and Energy Act of 2008, Public Law 110-246
(Farm Bill) amended Section 306(a)(2) of the Consolidated Farm and
Rural Development Act (CONACT) (7 U.S.C. 1926(a)(2)). The amendment
added a grant program to make Special Evaluation Assistance for Rural
Communities and Households (SEARCH) Program grants. SEARCH grants are
intended to assist the neediest, eligible communities that lack
financial resources to pay for feasibility studies, design assistance
and technical assistance associated with water and waste infrastructure
needs.
Under the SEARCH program, the Secretary may make predevelopment and
planning grants to public or quasi-public agencies, organizations
operated on a not-for-profit basis or Indian tribes on Federal and
State reservations and other federally recognized Indian tribes. Up to
100 percent of the eligible cost of the grant may be funded and may not
exceed $30,000. The grant recipients shall use the grant funds for
feasibility studies, design assistance, and development of an
application for financial assistance to financially distressed
communities in rural areas with populations of 2,500 or fewer
inhabitants for water and waste disposal projects as authorized in
Sections 306(a)(1), 306(a)(2) and 306(a)(24) of the Consolidated Farm
and Rural Development Act (CONACT).
Eligible entities for the SEARCH grants will be the same entities
eligible to obtain a loan, grant, or loan guarantee from the Rural
Utilities Service Water and Waste Disposal and Wastewater loan and
grant programs. However, as applied to the SEARCH program, rural area
has been defined as one with a population of 2,500 or less. The Agency
will define financially distressed areas as those where the median
household income of the areas to be served is either below the poverty
line or below 80 percent of the statewide non-metropolitan median
household income.
The Secretary may use not more than four percent of the total
amount of funds made available for a fiscal year for water and waste
disposal to carry out the SEARCH program.
The Administrator of the RUS is required to prescribe regulations
to implement the provisions of Section 6002 of the Farm Bill and does
so through the proposed regulations herein. In developing the proposed
SEARCH program regulations, the Agency relied heavily on existing Rural
Development regulations relative to water and waste disposal loans and
grants.
List of Subjects in 7 CFR Part 1774
Community development, Grant programs, Reporting and recordkeeping
requirements, Rural areas, Waste treatment and disposal, Water supply.
Therefore for the reasons discussed in the preamble, RUS proposes
to amend chapter XVII of title 7 of the Code of Federal Regulations by
adding a new part 1774 to read as follows:
PART 1774--SPECIAL EVALUATION ASSISTANCE FOR RURAL COMMUNITIES AND
HOUSEHOLDS PROGRAM (SEARCH)
Subpart A--General Provisions
Sec.
1774.1 General.
1774.2 Definitions.
[[Page 3645]]
1774.3 Availability of forms and regulations.
1774.4 Allocation of funds.
1774.5-1774.6 [Reserved]
1774.7 Environmental requirements.
1774.8 Other Federal statutes.
1774.9 [Reserved]
Subpart B--Grant Application Processing
1774.10 Applications.
1774.11 [Reserved]
1774.12 Eligibility.
1774.13 Limitations.
1774.14 Eligible grant purposes.
1774.15 Selection criteria.
1774.16 Grant application processing and approval.
1774.17 Grant closing and disbursement.
1774.18 Reporting requirements, accounting methods and audits.
1774.19 Applications determined ineligible.
1774.20 Conflict of interest.
1774.21-1774.23 [Reserved]
1774.25-1774.99 [Reserved]
1774.100 OMB Control Number.
Authority: 7 U.S.C. 1926(a)(2)(C).
Subpart A--General Provisions
Sec. 1774.1 General.
The purpose of the Special Evaluation Assistance for Rural
Communities and Household (SEARCH) Grant program is to provide
financial assistance to the neediest, eligible communities, who lack
financial resources to pay for feasibility studies, design assistance
and technical assistance. This subpart sets forth the general policies
and procedures for making and processing predevelopment planning SEARCH
grants for water and waste projects.
Sec. 1774.2 Definitions.
The following definitions apply to subparts A and B of this part.
Agency. The Rural Utilities Service of the United States Department
of Agriculture (USDA) within the Rural Development mission area of the
Under Secretary for Rural Development. The Processing Official will
administer this water and waste program on behalf of the Rural
Utilities Service.
Approval official. The Agency official at the State level who has
been delegated the authority to approve grants.
ConAct. Consolidated Farm and Rural Development Act (7 U.S.C.
1926(a)(2)).
Design assistance. Preliminary design and engineering analysis
necessary for an application for funding. Design assistance does not
include financial assistance for development of plans, specifications,
or bidding documents.
DUNS Number. Data Universal Numbering System number obtained from
Dun and Bradstreet and used when applying for Federal grants or
cooperative agreements. A DUNS number may be obtained at no cost, by
calling 1-866-705-5711.
Eligible entity. Entity that meets eligibility requirements to
obtain a loan, loan guarantee or grant under Paragraphs 1, 2 or 24 of
Section 306(a) of the ConAct (codified at 7 U.S.C. Section
1926(a)(1)(2) and (24)).
Feasibility study. Documentation associated with an objective
analysis of project-related technical engineering or environmental
impact analyses required to support applications for funding water or
waste disposal projects through USDA, Rural Utilities Service or other
agencies.
Financially distressed area. An area is considered financially
distressed if the median household income of the area to be served is
either below the poverty line or below 80 percent of the statewide non-
metropolitan median household income based on available historic
statistical information from the latest decennial census.
Grantee. The applicant receiving financial assistance directly from
the RUS to carry out the project or program under this program.
Poverty line. The level of income for a family of four, as defined
in section 673(2) of the Community Services Block Grant Act (42 U.S.C.
9902(2)).
Processing official. The Agency official designated by the approval
official as having the authority to accept and process applications for
water and waste disposal assistance.
Rural area. For the purposes of this SEARCH program, any area not
in a city or town with a population of 2,500 or fewer, according to the
latest decennial census of the United States.
State. Any of the 50 States, the District of Columbia, the
Commonwealth of Puerto Rico, the Territory of Guam, the Commonwealth of
the Northern Mariana Islands, the Republic of the Marshall Islands, the
Federated States of Micronesia, the Republic of Palau, and the U.S.
Virgin Islands.
Technical assistance. Supervision, oversight, or training by an
organization for the development of an application for financial
assistance.
Sec. 1774.3 Availability of forms and regulations.
Information about the forms, instructions, regulations, bulletins,
OMB Circulars, Treasury Circulars, standards, documents and
publications cited in this part is available from any UDSA/Rural
Development Office or the United States Department of Agriculture,
Washington, DC 20250-1500 and at http://www.grants.gov.
Sec. 1774.4 Allocation of funds.
The Secretary may use not more than four percent of the total
amount of funds made available for a fiscal year for water and waste
disposal activities for SEARCH grants.
Sec. Sec. 1774.5-1774.6 [Reserved]
Sec. 1774.7 Environmental requirements.
The policies and regulations contained in Part 1794 of this chapter
apply to grants made in accordance with this part.
Sec. 1774.8 Other Federal Statutes.
Other Federal statutes and regulations are applicable to grants
awarded under this part. These include but are not limited to:
(a) 7 CFR part 1, subpart A--USDA implementation of Freedom of
Information Act.
(b) 7 CFR part 3--USDA implementation of OMB Circular No. A-129
regarding debt collection.
(c) 7 CFR part 15, subpart A--USDA implementation of Title VI of
the Civil Rights Act of 1964, as amended.
(d) 7 CFR part 1794, RUS Implementation of the National
Environmental Policy Act.
(e) 7 CFR part 1901, subpart E--Civil Rights Compliance
Requirements.
(f) 7 CFR part 3015--Uniform Federal Assistance Regulations.
(g) 7 CFR part 3016--USDA Implementation of OMB Circular Nos. A-102
and A-97, Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments.
(h) 7 CFR part 3018-- Restrictions on Lobbying, prohibiting the use
of appropriated funds to influence Congress or a Federal agency in
connection with the making of any Federal grant and other Federal
contracting and financial transactions.
(i) 7 CFR part 3019--USDA implementation of OMB Circular A-110,
Uniform Administrative Requirements for Grants and Agreements With
Institutions of Higher Education, Hospitals, and Other Nonprofit
Organizations.
(j) 7 CFR part 3021, as amended--Government-wide Debarment and
Suspension (Non-procurement); Government-wide Requirements for Drug-
Free Workplace (Grants), implementing Executive Order 12549 on
debarment and suspension and the Drug-Free Workplace Act of 1988 (41
U.S.C. 701).
(k) 7 CFR part 3052--USDA implementation of OMB Circular No. A-133
regarding audits of institutions of higher education and other
nonprofit institutions.
[[Page 3646]]
(l) 29 U.S.C. 794, section 504--Rehabilitation Act of 1973, and 7
CFR part 15B (USDA implementation of statute), prohibiting
discrimination based upon physical or mental handicap in federally
assisted programs.
Sec. 1774.9 [Reserved]
Subpart B--Grant Application Processing
Sec. 1774.10 Applications.
(a) To file an application, an organization must provide their DUNS
number. An organization may obtain a DUNS number from Dun and
Bradstreet by calling (1-866-705-5711). To file a complete application,
the following information should be submitted:
(1) Standard Form 424, ``Application for Federal Assistance (For
Non-Construction).''
(2) Standard Form 424A & B, ``Budget Information--Non-Construction
Programs.''
(3) Supporting documentation necessary to make an eligibility
determination such as financial statements, audits, organizational
documents, or existing debt instruments. The Processing Official will
advise applicants regarding the required documents. Applicants that are
indebted to RUS will not need to submit documents already on file with
the Processing Official as long as such documents are current and
valid.
(4) Project narrative detailing the project to be financed with the
SEARCH grant funds. The narrative will also provide details on the
activities or tasks to be accomplished, objectives, timetables for task
completion, and anticipated results.
(5) The applicant's Internal Revenue Service Taxpayer
Identification Number (TIN).
(6) Other Forms and certifications. Applicants will be required to
submit the following items to the Processing Official, upon
notification from the Processing Official to proceed with further
development of the full application:
(i) Form RD 442-7, ``Operating Budget'';
(ii) Form RD 400-1, ``Equal Opportunity Agreement'';
(iii) Form RD 400-4, ``Assurance Agreement'';
(iv) Form AD-1047, ``Certification Regarding Debarment, Suspension
and other Responsibility Matters'';
(v) Form AD-1049, Certification regarding Drug-Free Workplace
Requirements (Grants) Alternative I For Grantees Other Than
Individuals;
(vi) Certifications for Contracts, Grants, and Loans (Regarding
Lobbying); and
(vii) Certification regarding prohibited tying arrangements.
Applicants that provide electric service must provide the Agency a
certification that they will not require users of a water or waste
facility financed under this part to accept electric service as a
condition of receiving assistance.
(b) Applicants are encouraged to contact the State Office or the
Processing Official to find out how to file electronically. The
application and supporting documentation must be sent or delivered to
the Processing Official, unless it is filed electronically.
Sec. 1774.11 [Reserved]
Sec. 1774.12 Eligibility.
The following eligibility requirements must be met:
(a) The applicant must be:
(1) A public body, such as a municipality, county, district,
authority, or other political subdivision or a state, territory or
commonwealth, or
(2) An organization operated on a not-for-profit basis, such as an
association, cooperative, or private corporation. The organization must
be an association controlled by a local public body or bodies, or have
a broadly based ownership by or membership of people of the local
community, or
(3) Indian tribes on Federal and State reservations and other
federally recognized Indian tribes.
(b) The area to be served must be financially distressed and rural
as defined in Sec. 1774.2 of this part.
Sec. 1774.13 Limitations.
Grant funds may not be used to:
(a) Fund political or lobbying activities.
(b) Pay for work already completed.
(c) Purchase real estate or vehicles, improve or renovate office
space, or repair and maintain privately owned property.
(d) Construct or furnish a building.
(e) Intervene in the Federal regulatory or adjudicatory
proceedings.
(f) Sue the Federal Government or any other government entities.
(g) Pay for any other costs that are not allowable under OMB
Circular A-87, OMB Circular A-110, OMB Circular A-102 or OMB Circular
A-122.
(h) Make contributions or donations to others.
(i) Fund projects that duplicate technical assistance given to
implement action plans under the National Forest-Dependent Rural
Communities Economic Diversification Act of 1990 (7 U.S.C. 6613).
Applicants cannot receive both grants made under this part and grants
that the Forest Service makes to implement the action plans for five
continuous years from the date of grant approval by the Forest Service.
(j) To pay an outstanding judgment obtained by the United States in
a Federal Court (other than in the United States Tax Court), which has
been recorded. An applicant will be ineligible to receive a loan or
grant until the judgment is paid in full or otherwise satisfied.
Sec. 1774.14 Eligible grant purposes.
(a) Eligible predevelopment planning costs are feasibility studies,
preliminary design assistance, and technical assistance as each is
defined in Sec. 1774.2. The eligible predevelopment activities funded
with these grant funds must be agreed to and accepted by the Agency
prior to the disbursement of the SEARCH grant. The predevelopment
planning costs must be related to a proposed project that meets the
following requirements:
(1) To construct, enlarge, extend, or otherwise improve rural
water, sanitary sewage, solid waste disposal, and storm wastewater
disposal facilities.
(2) To construct or relocate public buildings, roads, bridges,
fences, or utilities, and to make other public improvements necessary
for the successful operation or protection of facilities authorized in
paragraph (a)(1) of this section.
(3) To relocate private buildings, roads, bridges, fences, or
utilities, and other private improvements necessary for the successful
operation or protection of facilities authorized in paragraph (a)(1) of
this section.
(b) The Secretary, subject to the limitation in Sec. 1774.4 of
this part, may fund up to 100 percent of the eligible grant costs, not
to exceed $30,000.
Sec. 1774.15 Selection criteria.
Projects will be selected based primarily on the funding priorities
in 7 CFR 1780.17. The Program Official discretionary points stated in 7
CFR 1780.17(e) can also include consideration of the following
criteria:
(a) Systems with limited resources.
(b) Smallest systems with lowest incomes.
(c) Funds availability.
Sec. 1774.16 Grant application processing and approval.
(a) Before starting to assemble the full application, the applicant
should arrange through the Processing Official an application
conference to provide a basis for orderly application assembly.
[[Page 3647]]
The processing office will explain program requirements, public
information requirements and provide guidance on preparation of items
necessary for final determination.
(b) The Processing Official will determine if the application is
properly assembled. If not, the applicant will be notified within
fifteen federal working days as to what additional submittal items are
needed.
(c) The Processing Official and Approval Official will coordinate
their reviews to ensure that the applicant is advised about eligibility
and anticipated fund availability within 45 days of the receipt of a
completed application.
(d) The Processing Official will submit the following to the
Approval Official:
(1) ``Water and Waste Project Information Summary'';
(2) Form RD 442-3, ``Balance Sheet'' or a financial statement or
audit that includes a balance sheet;
(3) Letter of Conditions;
(4) Form RD 1942-46, ``Letter of Intent to Meet Conditions'';
(5) Form RD 1940-1, ``Request for Obligation of Funds'';
Sec. 1774.17 Grant closing and disbursement.
(a) Grant closing. RUS Bulletin 1780-12 ``Water or Waste System
Grant Agreement'' will be completed and executed in accordance with the
requirements of grant approval. The grant will be considered closed
when RUS Bulletin 1780-12 has been properly executed. Processing
officials or Approval officials are authorized to sign the grant
agreement on behalf of RUS.
(b) Grant disbursements. Agency policy is not to disburse grant
funds from the Treasury until they are actually needed by the
applicant. If an approved grant includes applicant or other
contributions, then these funds will be disbursed before the disbursal
of any Agency grant funds.
(c) Payment for project costs. Project costs will be monitored by
the RUS processing office. Invoices will be approved by the borrower
and submitted to the Processing Official for concurrence. The review
and acceptance of project costs by the Agency does not attest to the
correctness of the amounts, the quantities shown or that the work has
been performed under the terms of the agreements or contracts.
(d) Use of remaining funds. Funds remaining after all costs
incident to the basic project have been paid or provided for will not
include applicant contributions if SEARCH grants funds are financing
less than 100 percent of the project. Funds remaining may be considered
in direct proportion to the amounts obtained from each source.
Remaining funds will be handled as follows:
(1) Remaining funds may be used for eligible grant purposes as
described in 1774.14 of this subpart, or
(2) Grant funds not expended will be canceled. Prior to the actual
cancellation, the borrower, its attorney and its engineer will be
notified of RUS' intent to cancel the remaining funds.
Sec. 1774.18 Reporting requirements, accounting methods and audits.
All Agency grantees will follow the reporting requirements as
outlined in 7 CFR 1780.47.
Sec. 1774.19 Applications determined ineligible.
If at any time an application is determined ineligible, the
processing office will notify the applicant in writing of the reasons.
The notification to the applicant will state that an appeal of this
decision may be made by the applicant under 7 CFR Part 11.
Sec. 1774.20 Conflict of interest.
Any processing or servicing activity conducted pursuant to this
part involving authorized assistance to Rural Development employees
with Water and Environmental Programs responsibility, members of their
families, known close relatives, or business or close personal
associates, is subject to the provisions of subpart D of part 1900 of
this title. Applicants of this assistance are required to identify any
known relationship or association with an RUS employee.
Sec. Sec. 1774.21-1774.23 [Reserved]
Sec. 1774.24 Exception authority.
The Administrator may, in individual cases, make an exception to
any requirement or provision of this part which is not inconsistent
with the authorizing statute or other applicable law and is determined
to be in the Government's interest. Requests for exceptions must be
made in writing by the State Director and supported with documentation
to explain the adverse effect on the Government's interest, propose
alternative course(s) of action, and show how the adverse effect will
be eliminated or minimized if the exception is granted. The exception
decision will be documented in writing, signed by the Administrator,
and retained in the files.
Sec. Sec. 1774.25-1774.99 [Reserved]
Sec. 1774.100 OMB Control Number.
The information collection requirements in this part will not be
effective until approved by the Office of Management and Budget (OMB),
subject to the submission of a paperwork package to OMB and assigned an
OMB Control Number.
Dated: January 15, 2010.
Jonathan Adelstein,
Administrator, Rural Utilities Service.
[FR Doc. 2010-1213 Filed 1-21-10; 8:45 am]
BILLING CODE 3410-15-P